What Shein’s $27bn IPO means for Mubadala
Matein Khalid Chinese fast-fashion giant Shein is set to list in Hong Kong on September 1 at a valuation of up to $27 billion. That is less than half the $64 billion valuation at which Abu Dhabi sovereign wealth fund Mubadala invested in 2023. It is a brutal comedown for a retailer once expected to be worth $100 billion. My knowledge of sartorial retailing is admittedly less than encyclopaedic.…
Chinese fast-fashion retailer Shein is preparing to list on the Hong Kong stock exchange on September 1, with a valuation of up to $27 billion. This is significantly lower than the $64 billion valuation it received from Abu Dhabi's sovereign wealth fund, Mubadala, in 2023. Shein's rapid growth was evident during the COVID-19 pandemic, with revenues increasing from $16 billion in 2021 to $32 billion in 2023.
The company was once expected to reach a $100 billion valuation, but geopolitical tensions, trade restrictions, and falling global sales growth have driven its valuation down. Mubadala's investment in Shein was a significant deal, brokered by a team of dealmakers from the UAE, and marked a milestone for the fund as a pivot point for China Inc. In 2025, Shein reported a net profit of $2 billion on global revenues of $40 billion, resulting in an IPO valuation of around 13.5 times trailing earnings.
Despite operating losses in the first half of 2026, Shein's long-term prospects remain positive due to its expanding presence in emerging markets, particularly India, and its AI-driven growth strategy. If these factors materialize, Shein could reach Morgan Stanley's $54 billion target valuation, potentially leading to a profitable exit for Mubadala.
Written by urgent.news from Arabian Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
